Issue Date: 
Wednesday, October 30, 2019

Differences between an RFI, RFQ and RFP

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

We are repeatedly asked what the difference is between a Request for Information (RFI), a Request for Proposal (RFP) and a Request for Quote (RFQ).

“RFX” is a term used, to refer to all ‘Request For…’ documents used to solicit responses, of various types, from suppliers.  The three common documents are:

  • Request for Information (RFI)
  • Request for Proposal (RFP)
  • Request for Quote (RFQ)

According to the Government’s eTenders portal (http://www.etenders.gov.za) the differences between RFQ’s, RFI’s and RFP’s are as follows:

Request for Information (RFI)

An RFI is used when the solution to a business problem is not immediately evident or clearly defined.  The RFI is used to gather information, NOT to select or an award.

The Supply Chain Management Unit collaborates with the Customer to:

  • Clearly describe the problem;
  • Solicit external expertise regarding how to solve the problem;
  • Study proposed solutions.

Request for Proposal (RFP)

An RFQ is used when the Customer understands the business problem and what is needed to solve it, including specifications and procedures.  Price is usually not the determining factor in the evaluation of an RFP.  Factors such as quality, service, and reputation are also taken into consideration.

Request for Quote (RFQ)

An RFQ is used to obtain pricing, delivery information, terms, and conditions from suppliers.  In this case, requestors have a clear understanding of what they need, including requirements and specifications.  To procure the exact product or service needed, the Customer provides the Supply Chain Management Unit with as much information as possible, including complete specifications, quantities, and delivery schedule.

The common thread between all three types of “RFX” documents is that the Customer/Government Entity is not obliged to appoint a service provider on the results from issuing any of these requests.  The best way to know that a tender award will be made is when you respond to a formal quotation or a competitive bid.

Normally a formal quotation will be for goods or services with a value of between R30,000-00 and R200,000-00 and a competitive bid will be for goods or services with a value exceeding R200,000-00.

To learn more about this and many other tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town.  Book and pay online at https://howtotender.co.za/tender-expert-form/

Contact us at wernervr@howtotender.co.za should you require more information.

You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender.  It includes examples of completed SBD forms.

Title Closing Date Tender No.
Appointment of a service provider for the provision of Sharepoint implementation and migration of current EPPF intranet onto Sharepoint 2020-11-20 12:00 No reference number
Provision of Secretarial Services 2020-11-16 12:00 NCT 4/3/2/38
Public Relations Agency 2020-11-16 12:00 SAT UK 001/20
Provision of auto-electrical repairs inclusive of supply and fitment of batteries for 6 areas 2020-11-23 10:00 149G/2020/21
Consulting engineering services for the administration and construction monitoring of the upgrade on National Route 2 from Kwamashu interchange, section 25 (km 28.6) to Umdloti River Bridge, section 26 (km 14.0) 2020-11-20 11:00 SANRAL N002-260-2018/9S-B
Provision of Panel for Business Separation Programme IT Work Stream 2020-11-25 10:00 CORP5201
Electrification of Mthatha West Phase 4 2020-11-24 12:00 SCM: 028/2020/21
Cape Mail: 3 months cleaning and hygiene services 2020-11-04 11:00 RFQ 20/21/013 I Cape
Appointment of a service provider to provide firefighting assessment for insurability 2020-10-28 12:00 RFQ/TIM/001/2020
Procurement of an Audit management Software Tool for Armscor 2020-11-09 11:00 EICT/2020/12
Appointment of the service provider for the supply, installation and maintenance of Dell Core Switch for Public Protector South Africa (PPSA) 2020-11-13 11:00 PPSA 009/2020
Appointment of a Panel of Service Providers for Municipal Vehicles for a period of 3 Yrs 2020-11-27 12:00 PS 013 OF 2020
Supply and delivery of ready mix concrete and sand 2020-10-27 10:00 CRAC-ELF-34080
Supply and delivery of road works materials 2020-10-30 12:00 SRVM-RFQ 05/2021
Supply and delivery of plumbing accessories and fittings 2020-11-02 12:00 SRVM-RFQ 08/2021
The provision of physical guarding services in the KZN OU and east grid (distribution, transmission and telecoms) 2020-11-17 10:00 KZN0088/DG
Disposal of scrap ferrous metal 2020-11-11 10:00 MP020-06
The provision of C&I maintenance at Komati PO 2020-11-11 10:00 MPGXC006244R1
Appointment of a transaction advisor for the KZN Growth Fund Trust 2020-11-03 12:00 KGFT RFP 2020/017
Provision of proof reading and editing services of sector skills plan (SSP) and marketing related publication as and when required for the period until 31 March 2021. 2020-10-26 11:00 RFQ/2020/21/38

Pages

Who is the bidder or his or her representative?

By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.

In Organ of State tenders, the Standard Bidding Document 4 – Declaration of Inters – ask in paragraph 2.1 the following: “Full name of bidder or his or her representative... Read More

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